If Membership in Labor Unions Falls, Production Costs Will

Multiple Choice

If membership in labor unions falls, production costs will:

A) increase, and SRAS will shift to the left, decreasing equilibrium GDP and increasing the aggregate price level.
B) fall, there will be a downward movement along SRAS, equilibrium GDP will increase, and aggregate price level will fall.
C) not change and AD will shift to the right, increasing equilibrium GDP and aggregate price level.
D) fall and SRAS will shift to the right, increasing equilibrium GDP and lowering the aggregate price level.